Question

Please Help! Will Medal!
Samuel took out a personal loan of 13,000 at 7% interest, how much interest will he pay after 4 years. Suppose he pays off the loan in 2 years instead of 4 how much money will he save in interest

Answer 1

I'm assuming this is an appropriate/sufficient answer:
http://openstudy.com/study#/updates/54c93106e4b0331aa6852d42

Answer 2

I'll calculate to make sure, hold on

Answer 3

The second part is the part I am struggling with, thank you though.

Answer 4

Well you just halve the years, no?

Answer 5

You can always check with a interest calculator - http://www.calculatorsoup.com/calculators/financial/simple-interest-plus-principal-calculator.php

Answer 6

This is my equation I have gotten so far... 13,000 x 0.07 x4 = 3,640

Answer 7

Here: http://prntscr.com/6vlarx

Answer 8

So then:
"First, converting R percent to r a decimal
r = R/100 = 7%/100 = 0.07 per year,
then, solving our equation"

A = 13000(1 + (0.07 × 2)) =

Answer 9

Is that understandable? :)

Answer 10

Yes, Thank you very much!

Answer 11

You're welcome ^^, please don't forget to close the question!
Thanks for medal :)

Answer 12

Ok, No problem :)